The Arab Insurance Group (ARIG) has reported $8.32 million in net losses in the first six months of the financial year 2001/2002. This constitutes a 159 percent hike in the group’s net losses compared to the $3.23 million losses reported for the corresponding period the pervious FY.
The mounting net losses for the first half of 2002 were mainly attributed to huge provisions made for overseas claims, especially $5.5 million reinsurance recoveries to a failed Japanese aviation re-insurer. Another $3.9 million provisions were made against claims arising from Arig's UK subsidiary and $3.8 million for the Group's Moroccan insurance subsidiary, CNIA.
The group’s underwriting loss reached $3.3 million, marking an improvement over the $8.8 million loss recorded in 1H01. Arig’s gross premiums for 1H02 amounted to $124.7 million, a 12.3 drop versus the same period the previous year.
Formed in 1980, Arig is currently the largest reinsurance operation in the Middle East. The company has overseas offices in Tunisia, Kuala Lumpur, Hong Kong and Seoul. The Group operates subsidiaries in Morocco, Jordan, and Egypt and Tunisia.
Arig expanded its capital to $360 million in 1997 by issuing shares to investors in the Arab world. Kuwait, the United Arab Emirates and Libya each hold a 16.3 percent stake in ARIG, whose shares are traded on the Bahraini, Omani, Kuwaiti and Egyptian stock markets. Its global depository receipts are listed on the London Stock Exchange. — (menareport.com)
© 2002 Mena Report (www.menareport.com)
